Microsoft responds to Xbox Live 'hacking' story: no security breach

The Sun reported today that Xbox Live was "hacked" in 34 other countries, resulting in the theft of millions of dollars from user accounts, but it looks like the paper misused the term. The story mentions a phishing scheme that gave criminals access to personal details and credit card information as well as a password scam — neither situation sounds like it involved hacking at all.

Microsoft has responded to the story with an announcement stating that Xbox Live wasn't hacked while confirming that there hasn't been a security breach. The company has admitted, however, that "a number of Xbox Live members" have recently been subject to phishing scams and that it's currently working closely with affected users to investigate and resolve...